First quarter 2019 net income of $14.1 million, compared to net income
of $34.1 million in first quarter 2018

First quarter 2019 Adjusted EBITDA of $115.3 million, an increase of
13% compared to $101.7 million in the first quarter 2018

First quarter 2019 distributable cash flow to common unitholders of
$68.3 million; First quarter 2019 coverage ratio was 1.6x

Ended March 31, 2019, with approximately $1.8 billion in total debt
and a 4.1x leverage ratio; Crestwood has substantial liquidity
available under its $1.25 billion revolver with $593 million drawn as
of March 31, 2019

Announced first quarter 2019 cash distribution of $0.60 per common
unit, or $2.40 per common unit on an annualized basis, payable on May
15, 2019, to unitholders of record as of May 8, 2019

Recent Events

On April 9, 2019, Crestwood Niobrara LLC (“Crestwood Niobrara”)
acquired a 50% interest in Jackalope Gas Gathering Services, L.L.C.
(“Jackalope”) from The Williams Companies, Inc. (NYSE: WMB)
(“Williams”) for approximately $485 million; Jackalope assets are
expected to generate cash flow of $100 million in 2019 growing to $150
million in 2021

Crestwood funded the Jackalope acquisition through a combination of
the issuance of an additional $235 million of preferred equity to
Crestwood Niobrara’s existing preferred equity investors and
borrowings under its revolving credit facility

On April 11, 2019, Crestwood issued $600 million of senior notes at
5.625% due 2027; Proceeds were used to repay borrowings under
revolving credit facility; Pro forma for the issuance, the balance on
the revolving credit facility was approximately $250 million as of
March 31, 2019

Following the Jackalope acquisition, Crestwood updated its full-year
2019 Adjusted EBITDA range to $500 million to $530 million, which
excludes $20 million of PRB cash received in excess of recognized
revenues in Q2-Q4 2019

Management Commentary

“During the first quarter, Crestwood’s operational execution and the
strong fundamentals across our growth assets drove a 13% increase in
Adjusted EBITDA, and a 28% increase in DCF per unit and Distributable
Cash Flow compared to the same period in 2018,” said Robert G. Phillips,
Chairman, President and Chief Executive Officer of Crestwood’s general
partner. “These consistent results achieved our target financial
metrics, with first quarter 2019 coverage and leverage ratios of 1.6x
and 4.1x, respectively, while we made significant progress on our
capital expansion programs in the Bakken and Powder River Basin.”

Mr. Phillips, continued, “Additionally, we completed an important
strategic step to expand our growth portfolio, with the recent purchase
of Williams’ interest in the Jackalope joint venture, which allows us to
consolidate ownership and assume operatorship of premium gathering and
processing (G&P) assets in the fast growing Powder River Basin. The
transaction, partially funded by our existing Niobrara preferred equity
partners, also positioned us to execute a successful long-term debt
issuance that enhances our financial flexibility, lowers our long-term
cost of capital and positions Crestwood to continue its important Bakken
and expanded Powder River Basin capital programs without the need to
access public equity markets.”

Mr. Phillips, concluded, “With increased confidence in underlying
customer activity in the Bakken and Powder River Basin, we have
meaningfully increased our 2019 earnings guidance and expect to generate
a 20% annual DCF per unit growth rate through 2020. Looking forward,
Crestwood’s strategy of growth through financial discipline will
continue to focus on its core areas and businesses, investments that
deliver returns above our long-term cost of capital and transactions
that are accretive to DCF per unit while maintaining balance sheet
strength and flexibility.”

First Quarter 2019 Segment Results and Outlook

Gathering and Processing segment EBITDA totaled $77.0 million in the
first quarter 2019 compared to $82.0 million in the first quarter 2018.
First quarter 2019 segment results were impacted by $4.0 million of
non-cash losses on the sale and retirement of property, plant and
equipment in the Granite Wash and Delaware Basin. During the first
quarter 2019, segment EBITDA benefitted from a 34% increase in Bakken
processing volumes, a 44% increase in Bakken produced water volumes and
a 36% increase in Delaware Basin gas gathering volumes, offset by
natural field declines on the SW Marcellus, Barnett and Fayetteville
gathering systems. Crestwood expects Bakken and Powder River Basin
gathering system expansions, continuing producer well connects, and the
Bear Den II processing plant, to be completed in the third quarter, to
drive segment EBITDA growth in the second half of 2019.

Storage and Transportation segment EBITDA totaled $17.5 million in the
first quarter 2019 compared to $12.0 million in the first quarter 2018.
First quarter 2019 natural gas storage and transportation volumes
averaged 1.9 Bcf/d, compared to 2.2 Bcf/d in the first quarter 2018.
Effective July 1, 2018, Crestwood began receiving a 40% cash
distribution from the Stagecoach joint venture. The final step up to 50%
will occur on July 1, 2019 and will result in an estimated $10 million
in incremental EBITDA, or an annual increase of 20% over 2018. At the
COLT Hub, crude by rail loading volumes increased 63% from the first
quarter 2018 driven by wider WTI to Brent spreads, increased Bakken
crude production and favorable economics for Bakken crude with refinery
customers in the East and West Coast markets.

Marketing, Supply and Logistics (MS&L) segment EBITDA totaled $22.5
million in the first quarter 2019, compared to $13.2 million in the
first quarter 2018. Both periods exclude the non-cash change in fair
value of commodity inventory-related derivative contracts. First quarter
2018 results included $3.3 million of EBITDA from Crestwood’s West Coast
business, which was sold in late 2018. During the first quarter 2019,
Crestwood’s northeast NGL team benefitted from the seasonal spreads
captured from low-cost storage inventories built throughout 2018
combined with seasonal winter weather creating increased propane demand
in the northeast markets. Additionally, Crestwood’s Bakken focused crude
marketing team continued to utilize excess COLT storage capacity and its
MS&L transportation assets to capture low-risk margin opportunities
created by increased North Dakota crude production, COLT connectivity
and wider regional basis differentials.

Combined O&M and G&A expenses, net of non-cash unit based compensation,
in the first quarter 2019 were $48.5 million compared to $51.2 million
in the first quarter 2018. Crestwood reduced combined O&M and G&A
expenses by approximately $2.7 million, or 5.3%, primarily driven by
Crestwood’s efforts to streamline its MS&L segment operations (including
the sale of Crestwood’s West Coast business) and lower personnel
expenses.

First Quarter 2019 Business Update

Bakken Update

During the first quarter 2019, the Arrow system averaged crude oil
volumes of 93 MBbls/d, 16% above first quarter 2018, natural gas volumes
of 75 MMcf/d, 18% above first quarter 2018, and water volumes of 56
MBbls/d, or 44% above first quarter 2018. During the first quarter 2019,
Arrow completed 19 new well connections and producers remain on-track to
deliver approximately 100 new well connections by the end of 2019. First
quarter crude oil, natural gas, and water gathering volumes exceeded
Crestwood’s internal budget due to higher than forecasted initial
production rates. The remaining 2019 well connections are expected to be
driven primarily by WPX Energy and XTO Energy, which typically utilize
Arrow’s DAPL interconnect to deliver barrels to the LLS market.

In the first quarter 2019, Crestwood invested approximately $57 million
of growth capital on the Bear Den II processing plant expansion,
incremental Arrow debottlenecking projects and expansion of the Arrow
water system for the previously announced Enerplus contract. The Bear
Den II expansion will increase Crestwood’s total Bakken processing
capacity to 150 MMcf/d and provide Arrow producers with better flow
assurance, higher net-backs and access to premium priced downstream NGL
markets through the ONEOK Elk Creek pipeline expansion. Once Bear Den II
is completed, Crestwood will process 100% of the natural gas gathered on
the Arrow system, which will provide a meaningful step-up in Arrow cash
flow for the fourth quarter of 2019 and full year 2020.

Powder River Basin Update

On April 9, 2019, Crestwood Niobrara acquired Williams’ 50% interest in
the Jackalope joint venture in the Powder River Basin for approximately
$485 million. As a result of the transaction, Crestwood Niobrara now
owns 100% of Jackalope and has taken over full operations of the assets.
Crestwood funded the acquisition through the issuance of an additional
$235 million of preferred equity to Crestwood Niobrara’s existing
preferred equity investors, led by Global Infrastructure Partners, and
borrowings under its revolving credit facility. Crestwood expects the
transaction to be leverage neutral to the Crestwood balance sheet and
immediately accretive to distributable cash flow per unit in 2019, with
growing accretion thereafter based upon Chesapeake Energy’s (NYSE: CHK)
(“Chesapeake”) current development activity.

The Jackalope assets are located in Converse County, Wyoming, and
provide gathering, compression and processing services and include the
Jackalope Gas Gathering System and the Bucking Horse Processing Plant.
The system is supported by a 358,000 acreage dedication from Chesapeake
and a 30,000 acreage dedication from Panther Energy. The Bucking Horse
and Jackalope assets are currently undergoing extensive expansion
projects to increase gathering and processing capacity to 345 MMcf/d.
These expansion projects, including the Bucking Horse II plant,
gathering system line looping and additional compression, are expected
to be substantially complete in the first quarter 2020.

Currently, the Jackalope system is averaging gathering volumes of
approximately 150 MMcf/d, an increase of 20%, compared to 125.5 MMcf/d
in the fourth quarter 2018. Crestwood expects continued volume growth on
the system as Chesapeake recently added a sixth rig in the basin
primarily targeting the highly prolific Turner formation. Recent
industry research forecasts the Powder River Basin to be developed into
a mature basin over the next five years as the Turner formation has been
identified as a Tier 1 formation across all plays in the lower 48. In
2019, Chesapeake previously announced it expects to invest approximately
$400 million on drilling and completion costs to bring an estimated 65
wells online. Based on current rig activity and growing initial
production volumes, Chesapeake expects to double system volumes in 2019.

Powder River Basin Minimum Revenue Guarantee and Revenue Recognition

The Jackalope assets are supported by a 20-year fixed fee gathering and
processing agreement with Chesapeake that includes a minimum revenue
guarantee provision that allows for a higher fixed fee until a certain
cash flow threshold is obtained. Once the minimum revenue guarantee
threshold is achieved, the fixed rate will adjust to a lower fee. Based
on Chesapeake’s current development activity and long-term outlook,
Crestwood forecasts this to occur in the second half of 2021.

Under FASB’s ASC 606 revenue recognition guidance, Crestwood utilizes an
average blended flat rate over the life of the contract to recognize
revenue in its GAAP financial statements. As a result, in 2019, the
actual cash Crestwood receives from Jackalope will be substantially
higher than what it will recognize in consolidated revenues and Adjusted
EBITDA. For 2019, that variance between actual cash flows and recognized
revenues is expected to be approximately $20 million. While Crestwood
will not adjust for this difference in its reported Adjusted EBITDA,
Crestwood will adjust its calculation of distributable cash flow
available to common unitholders for this difference going forward as it
provides a more accurate depiction of Crestwood’s available cash. In
addition, beginning with second quarter 2019 results, when reporting its
financial leverage ratio, Crestwood will make the same adjustment for
actual cash flow from Jackalope, instead of reported Adjusted EBITDA, in
accordance with the covenants under its credit agreement.

Updated 2019 Financial Guidance

Following the acquisition of the Powder River Basin joint venture
announced on April 10, 2019, Crestwood provided the revised 2019
guidance is provided below. These projections are subject to risks and
uncertainties as described in the “Forward-Looking Statements” section
at the end of this release.

Net income of $125 million to $155 million

Adjusted EBITDA of $500 million to $530 million, excluding $20 million
of PRB cash received in excess of recognized revenues in Q2-Q4 2019

Contribution by operating segment is set forth below:

$US millions

FY 2019 Range

Operating Segment

Low

High

Gathering & Processing

$425

–

$445

Storage & Transportation

85

–

90

Marketing, Supply & Logistics

55

–

60

Less: Corporate G&A

(65)

(65)

Adjusted EBITDA*

$500

–

$530

Plus: PRB cash received in excess of recognized revenues

20

20

Less: Maintenance Capital

(20)

(25)

Less: Interest Expense

(130)

(135)

Less: Other

(5)

(5)

Distributable Cash Flow

$365

$395

Less: Distributions to Niobrara Preferred

(30)

(30)

Less: Distributions to Series A Preferred

(60)

(60)

Distributable Cash Flow Available to Common Unitholders

$275

$305

*Note: Excludes approximately $20 million of Powder River Basin
deferred revenue. PRB deferred revenue is calculated as the
difference between the actual cash generated by the PRB assets’
minimum revenue commitment and revenue recognized under ASC 606.

Crestwood invested approximately $98 million in consolidated growth
capital projects and joint venture contributions during the first
quarter 2019. As of March 31, 2019, Crestwood had approximately $1.8
billion of debt outstanding, comprised of $1.2 billion of fixed-rate
senior notes and $593 million outstanding under its $1.25 billion
revolving credit facility. Crestwood’s leverage ratio was 4.1x as of
March 31, 2019. Based on the current outlook for 2019, Crestwood expects
to continue to utilize excess retained DCF, significant availability
under its revolving credit facility, and evaluate non-core asset
divestitures to fund its capital program. Crestwood currently has 71.3
million preferred units outstanding (par value of $9.13 per unit) which
pay a fixed-rate annual cash distribution of 9.25%, payable quarterly.

On April 11, 2019, Crestwood issued $600 million of fixed-rate senior
notes at 5.625% due 2027. Proceeds from the offering were used to repay
outstanding borrowings under the revolving credit facility, including
$250 million utilized to fund the Jackalope acquisition. Pro forma for
the issuance, Crestwood’s debt outstanding is comprised of $1.8 billion
in fixed-rate senior notes and approximately $250 million outstanding
under the revolving credit facility as of March 31, 2019. Crestwood is
committed to maintaining a leverage ratio between 4.0x to 4.5x in 2019
and expects to achieve a leverage ratio between 3.5x and 4.0x by the
first half of 2020.

Sustainability Program Update

Crestwood continues to make strides in the implementation of an MLP
industry leading sustainability program. Following the most recent Board
of Directors Sustainability committee meeting, a three-year
sustainability strategy was approved that will help guide Crestwood’s
long-term sustainability program development. During the first quarter
2019, Crestwood completed a Materiality Assessment that identified key
content to address in its 2018 report and the company remains on track
to publish its inaugural sustainability report, prepared in accordance
with the Global Reporting Initiative, in June 2019. Following the
issuance of its inaugural sustainability report, Crestwood’s three-year
strategy will be to enhance reporting metrics and further integrate
sustainability into the business. For up to date information on
Crestwood’s on-going commitment to sustainability please visit www.crestwoodlp.com/sustainability.

Upcoming Conference Participation

Crestwood’s management will participate in the following upcoming
investor conferences. Prior to the start of each conference, new
presentation materials may be posted to the Investors section of
Crestwood’s website at www.crestwoodlp.com.

Management will host a conference call for investors and analysts of
Crestwood today at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) which
will be broadcast live over the internet. Investors will be able to
connect to the webcast via the Investors page of Crestwood’s website at www.crestwoodlp.com.
Please log in at least 10 minutes in advance to register and download
any necessary software. A replay will be available shortly after the
call for 90 days.

Non-GAAP Financial Measures

Adjusted EBITDA and distributable cash flow are non-GAAP financial
measures. The accompanying schedules of this news release provide
reconciliations of these non-GAAP financial measures to their most
directly comparable financial measures calculated and presented in
accordance with GAAP. Our non-GAAP financial measures should not be
considered as alternatives to GAAP measures such as net income or
operating income, or any other GAAP measure of liquidity or financial
performance.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning
of the U.S. Private Securities Litigation Reform Act of 1995 and Section
21E of the Securities and Exchange Act of 1934. The words “expects,”
“believes,” “anticipates,” “plans,” “will,” “shall,” “estimates,” and
similar expressions identify forward-looking statements. Forward-looking
statements are subject to risks and uncertainties and are based on the
beliefs and assumptions of management, based on information currently
available to them. Although Crestwood believes that these
forward-looking statements are based on reasonable assumptions, it can
give no assurance that any such forward-looking statements will
materialize. Important factors that could cause actual results to differ
materially from those expressed in or implied by these forward-looking
statements include the risks and uncertainties described in Crestwood’s
reports filed with the Securities and Exchange Commission, including its
Annual Report on Form 10-K and its subsequent reports, which are
available through the SEC’s EDGAR system at www.sec.gov
and on our website. Readers are cautioned not to place undue reliance on
forward-looking statements, which reflect management’s view only as of
the date made, and Crestwood assumes no obligation to update these
forward-looking statements.

About Crestwood Equity Partners LP

Houston, Texas, based Crestwood Equity Partners LP (NYSE: CEQP) is a
master limited partnership that owns and operates midstream businesses
in multiple shale resource plays across the United States. Crestwood
Equity is engaged in the gathering, processing, treating, compression,
storage and transportation of natural gas; storage, transportation,
terminalling, and marketing of NGLs; gathering, storage, terminalling
and marketing of crude oil; and gathering and disposal of produced water.

(1) Please see non-GAAP reconciliation table included at
the end of the press release.